IF TAKEOVER PUSHED THROUGH Nonresidents’ benefits face ax

The Legislature will have to amend existing laws to remove benefits provided to nonresident workers if the federal government succeeds in its plan to apply the U.S. minimum wage standards in the Commonwealth, according to House Speaker Diego T. Benavente.

But he has assured the private sector that the island government would step up efforts to block attempts in the Congress to strip CNMI authority over local immigration, minimum wage and customs laws.

Benavente, along with other lawmakers, met last week with members of the Saipan Chamber of Commerce during their monthly dialogue which tackled the proposed federal takeover.

According to the speaker, the Chamber brought up the idea of removing the benefits, such as subsidized food and lodging, transportation and medical insurance, if and when the minimum wage is raised to the federal level.

“That is something that’s going to be necessary to do immediately because I don’t see the business community here, first of all, even affording the present federal minimum wage and then again to require all the different benefits that are required for the employers to comply,” Benavente told in an interview.

He stressed the CNMI government will have to enact laws to remove these benefits which are stipulated in the contract of guest workers and required by the Department of Labor and Immigration when they approve work permits.

Business leaders on the island have repeatedly underscored these benefits to argue against moves to implement federal minimum wage laws in the Commonwealth, saying their cash value sums up to more than the prevailing rate of $5.15 per hour.

Benavente, however, said the government would be forced to do away with these requirements in efforts to assist companies cope with the anticipated increase in the costs of doing business here.

“If that were to happen, we didn’t have a choice,” he explained. “I’m sure that the leadership will not have a problem in removing the benefits.”

At the same time, the island government will continue ongoing reforms as part of their strategy in fending off persistent actions in Washington that will seek application of U.S. immigration and minimum wage laws on the island.

“Our efforts to fight off any federal intervention or implementation of federal laws should continue,” Benavente said, adding the local wage review board is currently assessing the business conditions to come up with a recommendation on the issue that will be crucial in the defense of existing powers granted the Commonwealth under the Covenant.